About Prudentia

Prudentia is the leading corporate finance company in the Baltic States serving clients from its offices in Tallinn and Riga. Prudentia provides a full spectrum of corporate finance and M&A advisory services for corporate and private clients.

In addition to the core business activities, Prudentia actively implements and participates in a number of socially significant projects. The main focus of these projects is to provide further support to the development of education within society and encourage the growth of nascent entrepreneurs.

TOP 101 of Latvia’s most valuable enterprises is one of the most important social activities organized by Prudentia in partnership with Nasdaq Riga from 2005. TOP101 of Estonia`s most valuable enterprises was officially launched by Prudentia and Nasdaq Tallinn in 2020.

More information about Prudentia is available here: prudentia.lv

About Nasdaq Riga

Nasdaq Riga is the only regulated secondary securities market in Latvia. It maintains regulated, open and efficient market infrastructure. The exchange provides companies with an efficient channel to raise capital and to facilitate the participation of institutional and private investors in primary offerings and secondary trading.

The exchange brings together investors, listed companies seeking access to capital resources, and exchange members who mediate securities transactions for investors through a common electronic trading system.

Nasdaq Baltic operates three stock exchanges – in Estonia, Latvia and Lithuania – and the Nasdaq CSD under one Baltic roof, providing the capital market infrastructure across the whole value chain – from listing, trading, and market data to clearing and settlement and safe-keeping of securities.
To learn more, visit nasdaqbaltic.com

• The value of companies listed in TOP 101 of Latvia`s most valuable enterprises is based on enterprise value, i.e., value of the company’s future money flow collectively to all of the company’s finance providers (shareholders/members and financial creditors). The exception is financial services providers (e.g. banks and insurance companies). Their evaluation reflects the company’s equity value, as due to the specific features of the financial sector, it is not possible to objectively provide enterprise value that is comparable with other TOP 101 participants.
• It is important to separate enterprise value from equity value. Enterprise value is the total company value (the market value of common equity and debt) minus cash.
• Each company's enterprise value (for financial services providers, their equity value) is determined using the comparable trading multiples method (the market approach). In addition the company’s openness, transparency, governance is evaluated based on publicly available information. The impact of such assessment is up to 20%. This evaluation is carried out by Nasdaq Riga. The following factors related to the company’s corporate governance are evaluated:
  • diversity, or whether both genders are represented on the Supervisory and Management Board; the presence of independent Supervisory Board members and clear declaration of their independence; the availability of Supervisory and Management Board work experience on the company's webpage; ability to identify majority shareholders;
  • financial information disclosed by the company, information on the most important risks and their governance;
  • disclosure of key internal policies, presence of corporate governance and sustainability reports on the company’s webpage, information about company’s strategic goals.
• The choice of this method is motivated by the following considerations:
  • it is simple;
  • it uses market data and publicly available annual reports and does not rely on subjective inputs;
  • it permits an indicative assessment of the company relatively quickly; and
  • it can be used even if the publicly available information is relatively limited.
• The financial analysis is performed by Prudentia and the publicly available information on the company’s corporate governance and transparency is assessed by Nasdaq Riga professionals.
• The exception is publicly listed companies, whose enterprise value is based on the company’s value on the stock exchange as of 30.06.